Online advance-fee scams deceive vulnerable consumers by requesting prepaid debit deposits or wire transfers under the guise of 'collateral insurance' before loan disbursement.
Rule of Law: Upfront Fees are 100% Illegal
Under Federal Trade Commission (FTC) rules and the Telemarketing Sales Rule, it is illegal for any lender or loan matching service in the United States to demand upfront payment before extending credit or securing a loan.